Markets with little movement like the Sargasso Sea in a novel by Salgari. In this context, the attraction towards bonds is not surprising. Not only Btp Italia, but also the Queen's Gilt assigned to London at a negative interest rate. Or the outcome of the offer, the first since 1986, for a twenty-year Treasury bond, placed at 1,22%, a yield that certifies the uncertain climate that reigns on the share listing front. But the depressed climate doesn't scare everyone equally. The utility sector, for example, offers more than one starting point, also because the scenario of low interest rates tends to favor one of the more defensive sectors, however, greatly penalized by the sudden slowdown in consumption between March/April.
Therefore, a soft recovery scenario is looming in the business area most appreciated (and supported) by the effort of the European Commission. Here are some signs to follow:
Today is the news of the positive opinion of the EIB on a loan of 250 million euros to Acea as part of the climate action plan promoted by the EIB.
The initiative is part of the European Green Recovery Plan which will focus on renewable energy and hydrogen, the renovation of buildings, clean mobility and the circular economy. In particular, for renewable energies, the plan proposes, for the next two years, a program of tenders at European level for a total of 15GW, with total investments of 25 billion euro. Support for national plans is also envisaged through co-financing from the European Investment Bank (EIB) of ten billion.
The news is positive for the entire European utility sector.
In Italy, in particular, for securities exposed to renewables and the electrification sector (Enel, Terna, Erg and Falck), hydrogen (Snam) and the circular economy (A2A, Hera, Iren, Acea).
Enel, the giant of the Italian stock market with a capitalization of 64 billion euros (in second place overall in the global sector index) confirms the recovery: after Wednesday's extension +3,5%, the stock scored on Thursday morning a rebound of just under one percentage point. Mediobanca Securities confirmed an outperform rating and a target price of 8,60 euros on the stock.
The good industrial performance and the further decrease in the cost of debt should have prompted, among other things, to abandon the sale of assets in Romania, already estimated at around 1 billion in Europe.
Lastly, the choice of a defensive sector par excellence is suggested by the roadmap of the Stoxx Utility index (315 points), one of the most resilient sectors since the beginning of the year: -11%, against -21% of the Stoxx Global index.
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